Research Briefing | Jun 3, 2021

China | We’re still largely sanguine on price pressures

We’re_still_largely_sanguine_on_price_pressures_Page_1

Large price increases for commodities and China’s heavy industry output continue to worry businesses, markets, and policymakers. If these price increases are sustained, it could lead to substantial consumer price inflation and thus force the PBoC to tighten monetary policy prematurely. Other concerns are that profitability in downstream sectors could get squeezed excessively, while some worry that the price pressure may spill over into prices for exports, potentially leading China to “export” its inflation.

Download this report to find out:

  • What’s driving prices higher?
  • What measures did China introduce to rein in prices for commodities and in heavy industry, and will they work?
  • Will China export its inflation?
  • Our latest China CPI and PPI forecasts.
Back to Resource Hub

Related Services

Flags of US and Canada

Post

Trump’s tariffs on Canada would raise regional commodity prices

A blanket 25% tariff on Canadian imports to the US could have a significant impact on commodity prices, squeeze profit margins of Canadian exporters and raise prices for US end-users.

Find Out More

Post

Chinese policy is unlikely to shift due to announced tariffs

US President Donald Trump's announcement of an additional 10% tariff on imports from China was in line with our baseline expectation. But the immediacy of implementation, the blanket style of tariffs, and the inclusion of stronger language around retaliation in policy documents still add significant uncertainty to our forecasts.

Find Out More